Everything You Wanted to Know About Bookkeeping

Bookkeeping is the process of recording financial transactions, understanding the details, and preparing summaries to be able to generate accurate reports. A bookkeeper can work for a company or as an independent contractor. If you are considering becoming or hiring someone to handle your bookkeeping needs, then this blog post will answer all your questions about what it takes to become a qualified bookkeeper! 

What is Bookkeeping? 

It is simply the activity or occupation of keeping records of the financial affairs of a business. Bookkeeping is the process of recording financial transactions, understanding the details, and preparing summaries to be able to generate accurate reports. Bookkeepers are individuals who manage all financial data for companies. Without bookkeepers, companies would not be aware of their current financial position, as well as the transactions that occur within the company. A bookkeeper can work for a company or as an independent contractor.  

Bookkeepers play a vital role in the financial department of companies, as they are responsible for recording all transactions. This means that bookkeeping is one of the most critical parts of running a business because it allows businesses to make informed decisions about their finances and how best to manage them. Bookkeepers can work on keeping records by either hand or using 

What is the Role of a Bookkeeper? 

A bookkeeper's role varies from one organization to another but typically includes:  

  • Maintain an accurate record of financial transactions 
  • Update and maintain the general ledger 
  • Reconciliation of entries into the accounting system 
  • Recording of debits & credits 
  • Maintain the trial balance, by a reconciliation of general ledgers 
  • Account reconciliation to assert the accuracy of transactions 
  • Use knowledge of local laws to comply with reporting requirements 
  • Monitor any variances from the projected budget 

Bookkeepers are responsible for providing accurate, up-to-date financial information about a business. They are always taking the pulse of a business. Most often, their reports go to business owners and managers to help them make decisions. 

What software do bookkeepers use? 

Most bookkeepers use a cloud-based accounting system that is easy to learn and navigate. Some, though not all, here are our picks of the top 5 Accounting software in Australia: 

Xero – Xero is the best in our review for micro-businesses that are looking for simple accounting software. 

QuickBooks Online (QBO) - QuickBooks Self-Employed accounting software is our top choice for part-time freelancers and small businesses who primarily want to track their income and expenses for their tax return.  

MYOB - MYOB offers a range of products including Essentials Payroll, MYOB Essentials, and MYOB AccountRight ideal for a variety of businesses, large and small. 

Reckon - Reckon One is an affordable online accounting software for small businesses. It is an ATO-approved and single touch payroll ready solution which helps you stay compliant and in control of your finances. 

Wave - Wave is an ideal accounting software platform for a service-based small business that sends simple invoices and does not need to track inventory or run payroll. 

What qualifications are required to be a bookkeeper? 

In Australia, you do not technically have to be certified in any way to work as a bookkeeper. That is the reason small business owners can do their own books and BAS (Business Activity Statements). Administrators with experience in bookkeeping can offer their services without having to get a qualification to formalise their experience. 

There are a few problems with this, however. If you are not certified, you may lose out on job opportunities or clients to bookkeepers who are certified. Even if you are a self-starter, it helps to have some formal training. If you are looking for qualifications in bookkeeping, we suggest you investigate the following qualifications: 

Certificate IV in Bookkeeping 

This qualification is designed for people who are looking to start a career as bookkeepers or need some extra skills. You will learn about how businesses work, double-entry accounting systems and more. This course takes around 12 months to complete full time study with an estimated. 

If you are looking for qualified and experienced bookkeepers. Speak with iKeep Bookkeeping, they are the highest rated bookkeeping service providers in Australia with over 15 years of experience. 

Topics: Bookkeeping